“What we are collectively trying to achieve as a society is to protect our planet and ensure prosperity and a high quality of life. Mining is an important part of this puzzle, and deposits cannot be relocated,” says Florian Anderhuber, Director of Energy and Climate at the European Association of Mining Industries, Metals, and Minerals, “Euromines,” in an exclusive interview with Demostat. He highlights that an IEA report has shown that the higher the sustainability level of a mine, the more reliable its production and the greater the added value it creates. “There are many examples within the EU—Sweden, Finland, and ultimately the ‘Jadar’ project—that demonstrate mining can be sustainable and responsible, and that it is much more than just digging a hole in the ground. It is an ecosystem that creates jobs, can protect biodiversity, attract investments and business opportunities—but only if it adheres to the highest standards and is seen as more than just a tool to meet resource needs.”
It is natural to be concerned about the impact of any industrial project. This applies not only to the mining industry but also to the construction of railways, power lines, renewable energy plants, or any other type of infrastructure or production facility. What we often see when considering mining projects is that they and their impacts are placed in the context of mining activities in parts of the world where regulations regarding permits and approvals are not established or where authorities do not have the capacity to enforce those regulations.
Demostat: Are the funds allocated for these purposes sufficient to encourage companies to change technology and direct consumers toward products that involve lower overall greenhouse gas emissions?
Anderhuber: The transition involves significant investments in new installations and processes, as well as considerable operational costs, given the high energy prices compared to other parts of the world. Therefore, both private and public sources of financing are necessary for this investment. Public sources play a role in reducing risk when consumers demand products that are carbon-neutral or have lower carbon emissions but are not necessarily willing to pay more for them.
Demostat: How much do geopolitical and strategic reasons, apart from the increasingly obvious climate ones, influence the speed of transition from fossil fuels to clean energy?
Anderhuber: The key lies in diversification. As the European Union’s ability to rely on its own strengths increases, sensitivity to pressures from abroad decreases. Russia’s war with Ukraine has led to an unprecedented rise in prices, due to the dependency on gas. The cost of electricity production depends on the price of gas, and results from the Joint Research Council show that this situation will continue for several years beyond 2030.
The faster we move away from our dependence on gas, the more resilient the industry will become, and past prices will become competitive in the international market. However, we must be careful not to allow the costs of transitioning to other energy sources to become a driver of deindustrialization. Geostrategic and geoeconomic resilience goes hand in hand with the competitiveness of a clean and green industry, and for that, we need massive and rapid expansion of non-fossil fuel energy production and the adjustment of energy market prices to keep industrial costs under control. The “Jadar” project in Serbia, for example, can drastically reduce Europe’s overall dependence on lithium while simultaneously creating local added value—all by applying the best available technologies for mining and processing. This not only promotes the geopolitical autonomy of Europe’s transition but also strengthens ties between the EU and Serbia, creates jobs and added value for Serbia, and promotes top-notch technologies, ensuring a leading position for responsible and sustainable mining technologies.
Demostat: How do you interpret the contradiction that, despite high CO2 emissions, global coal production is increasing?
Anderhuber: The drivers of global growth in coal production are India, China, and Indonesia, which offset the reduced coal use in the EU and the US. Demand for coal in the energy sector, especially in India and African countries, reflects the stronger economic activities of these countries, while China has increased coal production to reduce its dependence on suppliers.
The International Energy Agency estimates that coal demand peaked in 2023 and that we will witness a net reduction in coal consumption in 2024.
Demostat: How much does the energy storage problem affect the speed of transition from fossil fuels?
Anderhuber: More than 90% of electricity storage is currently done through reversible power plants. This technology depends on geographical and topological circumstances—so it cannot be equally applied everywhere. Other storage options include batteries or hydrogen, but these options again require very high costs due to the determination of marginal prices. If the grid needs to be balanced, the most expensive energy source sets the price for all others—and battery storage and hydrogen storage are more expensive solutions for balancing the power grid than, for example, natural gas. However, what is necessary for this to happen is the availability of a minimal amount of necessary energy—constant and stable supply of electricity that is not derived from fossil fuels.
Demostat: Why does the recycling industry cover only about 10% of materials, while the rest must be secured through mining activities?
Anderhuber: Depending on the material, the share of recycled materials is significantly higher. However, the energy transition is a raw materials transition: we need much more copper in the power grid, much more nickel and lithium for electric vehicles, more iron ore for steel in wind generators, as well as rare earth materials for permanent magnets in renewable energy production, and special and precious metals, for example, for the production of hydrogen catalysts. At the current stage of technological development, it is unlikely that we could cover 100% of our needs within a green, carbon-neutral, sustainable, and circular economy through recycling—there are always losses in terms of quality and quantity. Therefore, to meet our society’s demand and fulfill the promise of establishing a sustainable economy, the European mining industry is stockpiling recyclable materials for the future, in line with the highest sustainability requirements.
Demostat: How do ore processing processes create new environmental problems?
Anderhuber: Ore processing depends on the material being mined. For example, some ores require a sintering process during which the ore is heated to very high temperatures, leading to process emissions. Other ores, such as metal ores, are concentrated through a process called flotation, during which the ore is crushed into powder, and then the fraction containing the metal is separated from the residues. Other mined minerals can be directly used, such as salt. Depending on the impact of ore processing, mining companies implement very strict protective measures to ensure that neither the people working in the mine nor those living nearby are significantly harmed, and to protect the surrounding area. These measures include, for example, dust filters, water filtration systems, or sorting techniques to minimize potential impacts.
Demostat: How justified is it for residents of areas where mines are opening to fear environmental pollution?
Anderhuber: It is natural to be concerned about the impact of any industrial project. This applies not only to the mining industry but also to the construction of railways, power lines, renewable energy plants, or any other type of infrastructure or production facility.
What we often see when considering mining projects is that they and their impacts are placed in the context of mining activities in parts of the world where regulations regarding permits and approvals are not established or where authorities do not have the capacity to enforce those regulations.
The Critical Raw Materials Act requires similar stringent environmental and climate protection measures for strategic projects outside the EU, so a project outside the EU must adhere to the same level of water and soil protection as if it were being implemented within the EU.
Demostat: Can mining meet environmental conditions?
Anderhuber: What we are collectively trying to achieve as a society is to protect our planet while ensuring prosperity and a high quality of life. Mining is an important part of this puzzle, and deposits cannot be relocated. Mining can unlock prosperity, jobs, and innovation for the host country, stimulate development and create markets, but all of this depends on governance, regulation enforcement, and the willingness of consumers and producers to invest. Look at Sweden, for example: they operate the most sustainable mines—climate-neutral, committed to net biodiversity gains, with a high level of environmental protection.
This is credible value that attracts investments in mining in a proper, responsible, and sustainable way. This value is also the foundation of supply security. The International Energy Agency (IEA) has shown in its report that the more sustainable a mine’s operation, the more reliable its production and the greater the added value it creates. There are many examples of mining in the EU that precisely demonstrate this—Sweden, Finland, and ultimately the “Jadar” project show that mining can be sustainable and responsible, and that mining is much more than digging a hole in the ground. It is an ecosystem that creates jobs, can protect biodiversity, attract investments and business opportunities—but only if it adheres to the highest standards and is seen as more than just a tool to meet resource needs. I believe this is the biggest difference between European/Western mining and mining conducted by companies from the rest of the world.
The Green Deal agenda has been translated into law, and its implementation now requires agreement on industrial transformation and business opportunities by lowering structurally high energy prices, thereby ensuring access to the most sustainable technologies, and encouraging research and innovation for sustainable, green, and climate-neutral mining activities. Additionally, we need to better understand our own geological capacities and secure greater investments in national geological research, creating business opportunities for private companies conducting research.
We should be proud. Europe is at the forefront of sustainable and responsible mining activities with its advanced technologies presented today, with world-leading practices in environmental protection, social responsibility, and corporate governance.
Source : Demostat
